Chemical stocks are recession-priced already, Bloomberg reports » 16:4303/3103/31/20
DOW, HUN, APD, LIN, SHW
Bloomberg's Aoyon Ashraf wrote earlier that the S&P 500 Chemicals Industry index had the largest quarterly loss in the three months ending today since the 2008 financial crisis, according to data compiled by Bloomberg. According to the Bloomberg story, chemical stocks are ab excellent harbinger for economic downturns. "An analysis of historical data shows the chemical sector usually starts to price in a recession four to six quarters before it starts, analyst Hassan Ahmed wrote," according to the Bloomberg story. Companies mentioned in the story include Dow (DOW), Huntsman (HUN), Air Products (APD) , Linde (LIN) and Sherwin-Williams (SHW). Reference Link
Nutrien price target lowered to $41 from $49 at Credit Suisse » 07:3103/3103/31/20
Credit Suisse analyst…
Credit Suisse analyst Christopher Parkinson lowered the firm's price target on Nutrien to $41 from $49 and keeps a Neutral rating on the shares. The analyst believes the U.S. planting outlook is still solid, with slight risk to U.S. corn acres, which will bode well for Retail's performance. Moderate logistical challenges are likely to persist, but from his perspective this should boost inland U.S. prices, a tailwind for Nutrien. Nonetheless, Parkinson remains cautious on the K front. There are "new" concerns on industrial ammonia volumes and T&T NH3 production, headwinds which will pressure N GP, he adds.
Waste Connections price target lowered to $100 from $110 at BMO Capital » 07:2603/3103/31/20
BMO Capital analyst Devin…
BMO Capital analyst Devin Dodge lowered the firm's price target on Waste Connections to $100 from $110 but keeps an Outperform rating on the shares. The analyst notes that the solid waste sector has better visibility into near-term demand and profitability than nearly all other industrial companies, adding that Waste Connections position of focus on less competitive markets makes it even more defensive than its peers. Dodge further sees the company's risk-reward as compelling given its strong balance sheet and good liquidity along with industry-leading margins and free cash flows.
Nutrien continues to see solid demand for crop inputs » 16:5703/3003/30/20
CEO Chuck Magro states:…
CEO Chuck Magro states: "Nutrien continues to expect solid demand for crop inputs for the spring season, despite some recent wet weather in the US, which has caused modest delays in field activity in some regions of the country. Our business is deemed essential by governments around the world, which underscores the criticality of the agriculture sector. Our facilities have continued to operate, under enhanced safety protocols, in order to ensure growers globally have the products and solutions they need to maximize crop production. Nutrien has a strong balance sheet, stable dividend and ample access to liquidity as we enter our peak period of demand."
PBF Energy enters LOI with Air Products, suspends quarterly dividend » 07:1203/3003/30/20
PBF Energy (PBF)…
PBF Energy (PBF) announced a number of steps taken as part of a strategic plan for PBF to navigate current extraordinary and volatile markets. The company entered into a letter of intent, or LOI, with Air Products (APD) to monetize five hydrogen plants for cash proceeds of $530M, with a targeted transaction close in April. PBF will enter into off-take arrangements for hydrogen on terms in line with similar arrangements in place throughout its refining system. The company is reducing capital expenditures by $240M, a 35% reduction to previous 2020 guidance, including the Martinez refinery, and a more than 45% reduction of projected spend for the remainder of 2020. PBF is also lowering 2020 operating expenses by approximately $125M, driven by a significant reduction in discretionary activities and third party services. Also, the company is reducing corporate overhead expenses by over $20M on an annual basis primarily through salary reductions. Specifically, the board and executive leadership have reduced their compensation by 50%, while chairman and CEO Thomas Nimbley's salary has been reduced by 67%. In addition, more than 50% of corporate and non-represented employees have also reduced their salaries. Lastly, PBF is suspending its quarterly dividend of 30c per share, anticipated to preserve approximately $35M of cash each quarter to support the balance sheet. As a result of changing markets, previously-provided throughput guidance is withdrawn. The company is currently operating refineries at minimum rates, a throughput reduction of approximately 30% versus expectations.
Air Products signs agreements with PBF Energy » 07:0603/3003/30/20
Air Products (APD)…
Air Products (APD) announced it has signed agreements with PBF Energy (PBF) that include the $530M purchase of five hydrogen steam methane reformer hydrogen production plants and the long-term supply of hydrogen from those already operating plants to PBF refineries. The SMRs, with a combined nearly 300M standard cubic feet per day of production capacity, are located in Torrance and Martinez, California and Delaware City, Delaware. The deal is targeted to close during the third quarter of Air Products' 2020 fiscal year.
International Paper agrees to sell Brazilian corrugated packaging business » 05:2803/3003/30/20
International Paper has…
International Paper has entered into an agreement to sell its Brazilian corrugated packaging business to Klabin S.A. for R$330 million, with R$280 million to be paid at closing and R$50 million one year thereafter, subject to certain adjustments. This business includes three containerboard mills and four box plants. This agreement follows International Paper's previously announced strategic review of the Brazil packaging business. The transaction is expected to close in the second half of 2020. The company will continue to run its Papers and Forestry businesses in Brazil.
International Paper selling Brazilian corrugated packaging business » 20:1303/2903/29/20
International Paper has…
International Paper has entered into an agreement to sell its Brazilian corrugated packaging business to Klabin S.A. for R$330M, with R$280M to be paid at closing and R$50M one year thereafter, subject to certain adjustments. This business includes three containerboard mills and four box plants. This agreement follows International Paper's previously announced strategic review of the Brazil packaging business. The transaction is expected to close in the second half of 2020, subject to certain closing conditions and regulatory approvals. The company will continue to run its Papers and Forestry businesses in Brazil.
CF Industries put volume heavy and directionally bearish » 12:5503/2603/26/20
Bearish flow noted in CF…
Bearish flow noted in CF Industries with 1,051 puts trading, or 1.3x expected. Most active are May-20 25 puts and 3/27 weekly 27.5 puts, with total volume in those strikes near 720 contracts. The Put/Call Ratio is 1.60, while ATM IV is up nearly 8 points on the day. Earnings are expected on April 29th.
Goldman says sell Beyond Meat, slashes target to $39 on COVID-19 impact » 11:0903/2603/26/20
BYND, NTR, INGR, HRL
Shares of Beyond Meat…